The UK's services industry came out strongly in August, dampening fears of a recession. The index, which accounts for nearly 80% of the UK economy, rose from 47.4 in July to 52.9 in August – marking the biggest month on month rise in the survey’s history. Any score above 50 indicates growth and confidently takes services back to pre-Brexit levels. The pound jumped 0.6% against USD and EUR as result.
We have a busy week ahead for economic data. Tomorrow, we have the RBA rate announcement which is expected to remain at 1.50%, followed by ISM non-manufacturing from the USA. Wednesday we have manufacturing production and inflation report hearing where Mark Carney will testify on inflation and the UK’s economic outlook. This will be closely watched regarding BoE’s future monetary policy. Thursday, Draghi is speaking and there’s a realistic chance he could extend QE again. Finally on Friday, we have UK Trade Balance figures.
Latest FX news by Joe De Berniere